‘Be careful what you wish for’ — warning over changes to pensions

AN older people’s champion has raised concerns changes to how people can access their pensions could leave them struggling in the future.

Gill Farrington, chairman of the South Derbyshire Forum, a community group aimed particularly at elderly people, said she was wary yesterday’s Budget announcement that it was to become easier for people to access their pension pot could lead to elderly people squandering their savings.

Defending his plan, Chancellor George Osborne said pensioners should be ‘trusted’ to make the right financial decisions, but Mrs Farrington said: “For some people it will be brilliant but for others it is quite a concern.

“The temptation to spend the money is great for some people - they think it’s exciting to go on a couple of world cruises.”

Mrs Farrington said it was important for pensioners to find the right balance between treating themselves and not ending up struggling.

“People need to have a careful eye on what is going to happen in the future. Years ago people would say the Government won’t let me starve, but look how many people are using food banks,” she said.